PAULA FINANCIAL REFINANCES DEBT

Pasadena-based PAULA Financial announced it has completed the refinancing of its outstanding debt balance of $1.8 million. The company said the new credit facility represents a significant improvement in both interest rate and principal repayment terms, and provides for the payment of shareholder dividends. It also allows for the company to make stock repurchases. PAULA Financial reported net income for the third quarter of 2003 of $0.07 per share compared to $0.02 per share for the 2002 period. Total revenue for the third quarter of 2003 was $5.2 million compared to $3.5 million in third quarter 2002. Net income for the first nine months of 2003 was $0.14 per share compared to $0.06 per share for the 2002 period. Total revenue for the first nine months of 2003 was $14.1 million compared to $9.7 million for the same period in 2002.